the pboc gets another cut in the yuan rate. bloomberg sources say dow chemical is in late stage talks to merge, in what would be the industry's largest ever deal. welcome to "the pulse." i'm francine lacqua. let's get straight out to guy johnson live from my cap headquarters with some very exclusive interviews. this is the company's ceo. guy, over to you. guy: thank you indeed, francine. welcome to icap's charity day. raised $8 they million. it is a colorful affair. i feel massively underdressed. the good news is that michael spencer is also in his suit. good morning to you. $8 million last year. -- million pounds u.s.el: 180 million dollars. slightly is market-dependent, isn't it? your sense for this year? michael: sounds good here. listen, i don't control that, but our clients support us very generously. start to the good day. let's hope it continues. ways, you are changing the nature of your business. you are going electronic. what is happening? michael: charity day will definitely continue. month that weast are selling our

you are scratching your head about what to the pboc are up to. how do you make sense of what is happening in china? steve: they have the advantage of looking at everybody else and figuring out the better way of doing it. it was 20 years ago when the fed was not communicating what its rate was. you had to guess what the rate was after they moved the quantity of money. so for china, they have the option as well. they look at the ecb's communication and look at what the fed is doing and maybe, doing it differently. anathan: so they can see better way of doing it? nobody is entitled here to know exactly what is going on. and being slightly opaque seems to make sense. understand what i'm saying, you clearly did not understand what i'm saying. that is the famous quote. central bank policy making his tentative policy and the rest is communication. why have we gone from one to the other? steve: it is about trying to manage the expectations. this unconventional policy is quite complicated. guy: you have to believe. steve: it is a confidence trick. there a

the pboc is lowering the fix each day. seen four days of weakness in the yuan.ion is how much further will it go? some is that they are trying to get in ahead of the fed move. yuan.s. dollar and the have been moving very closely together which is not good for the chinese export competitiveness. weaker yuan should help on the macro front. anna: let's bring in an armstrong.- anna we're having a conversation about the latest chinese inflation data and what the authorities are doing with their currency. you expect the currency to be devalued further? >> it is very possible. the priority of the policymakers is to avoid the hardline bank. this would have quite a bad impact on the global economy and the region as a whole. especially those countries that would close ranks with china. don't be surprised if you see further devaluation of yuan. manus: we were having a conversation with matthew beasley and he said, globally we are probably expecting too much. the rate cuts and the theirement cuts -- mathematical equation has not had a desired outcome in terms of our percept

the pboc gets another cut in the yuan rate.rces say dow chemical is in late stage talks to merge, in what would be the industry's largest ever deal.

is dependent on pboc policy. pboc policy is loosening. they've made plenty of mistakes along the way. >> when we talk about china and to a new way to value its currency against a basket, what advantages does that offer beijing? >> one big benefit is that it is much harder to have a speculative run against the yuan . this did not come as a huge surprise to me. i thought the cleanest way to deepak at against the dollar is to peg against the basket. g against the dollar is to peg against the basket. complain whent to it is pegged against the basket. in summer, when we tried to nudge the peg upwards it depreciated the yuan by 2%. that was anat alternative open to them. i think this is a fairly intelligent move by the chinese. i welcome it. at thee take a look spread between the onshore and offshore yuan, many point to that saying the pba see -- pboc wants the yuan to depreciate. >> the chinese do not want the yuan to appreciate on the back of a narrow dollar rally. goes up 10%, they don't want to go up 10% with it. work?l it i think money wan

we getting a few clues from the pboc. trying to change the mentality that we are changing quickness in the yuan. it is still up against most of the currencies. it is up against 12th of the world's biggest currencies. it is because of this very close association between the yuan and the u.s. dollar that the pboc is saying, we are not necessarily weakening our currency against the u.s. dollar, which has been strong this year. sure, we are a little bit weaker , but we are actually stronger against the others. let's have a look at the yuan. not always just against the greenback. guy: let's look at the yuan against the currency basket. the japanese yen is a lot stronger against the chinese currency. what does that mean for the bank of japan? well, it is potentially a problem. the bank of japan is really at this point not expected to change policy. not in the short run. they are still looking at inflation targets and they are meeting later this week. theyxpectation is that will hold firm and not change policy at this point. guy

that now being confirmed this morning by the pboc in beijing. we will come back to this later on. the credit crunch has claimed another victim. the fund owned by the carlyle group is said to have $1 billion of withdrawal requests this quarter. the fund has performed poorly over the last 15 months and has seen investors leaving in droves. joining us is simon dollars and bill o'neill. good morning to you, gentlemen. simon, did was never going to be one. there were always going to be many. simon: we had 3rd avenue a couple weeks ago with stone lion capital. it is a culmination of declining prices,rices, oil investors having stretched further down the quality curve to try and find that incremental yield trade. we've had significant redemption. we've heard over the last 24, 48 hours, it is worth $8.5 billion. i guess that is going to call into question sustainability issues about the fund going forward. canary in the coal mine, but there's never just one. it reflects the perfect storm type conditions. guy: bill, any surprises here? bill: in a cycle like this, you will get very specific

says theys the pboc are strengthening oversight of online payment firms. kong,e of markets, hong shanghai, swinging back into gains. gains in some parts of the region today. those are your top headlines. ♪ >> this is bloomberg west. cori: i'm in for emily chang. mark zuckerberg fires back at his critics about expanding internet access in india. 'tis the season for jeff bezos's net worth to soar. gender and racial equality are back in the spotlight as twitter names a new head of diversity. now to our lead. facebook's mark zuckerberg making a personal appeal in one of india's leading newspapers insisting that the country allow , a free internet service. india, secretary wrote "instead of wanting to give people access to some basic internet services for free critics continue to spread false claims even if that means leaving behind a billion people. " it allows free mobile internet access. a restricted handful of apps including facebook. facebook says it is at least something. opponents say it threatens the principles of net neutrality. india's regulatory auth

from that perspective it's what the pboc is likely to allow.we're looking at around 660 by the end of 2016. maybe more but what that says is a fairly gentle decline but for the chinese to stand in the way of that trend puts them at a disadvantage. so things like dollar career and dollar taiwan it makes sense for the chinese to allow them to participate in that trend. >> you're going to stick around maybe even a little longer. maybe we can get you a cup of coffee in the meantime. celgene will allow selling of generic revlimid. they'll make and market a generic pill starting in 2026. a year before it expires. the drug accounted for nearly 2-thirds of celgene's annual sales. german trade up by almost 6. >> now turring pharmaceuticals is moving on and launching the search for a new ceo. he re-signed on friday aisha daf ago arrested and charged with securities fraud. turring will also expand to include more independent directors and plans to cut an unspecified number of jobs as well. >> bed bath and beyond is slashing it's third quarter outlook citi

the last 11 trading days the pboc if i canning down the yuan rate. they didn't do that overnight. more devaluation in 2016? >> we take a slightly more hawkish view on china to be honest. i think the market is underestimating the amount of stimulus that the pboc and policy makers have put forward. in fact, recently in august per se they loosened up the rights for regional banks to issue debt and now we're starting to see the returns of that as, you know, the economic data starts coming back into china. i think given the size of the stimulus packages put forward we should see china come back a little bit stronger in line and that to me means less of a devaluation in the yuan. >> peter, thank you very much. happy holidays to you and your family. peter from swiss corp bank. we're getting pictures that the fifa president seth blatter starting to give the press conference after 9 rulithe ruli ban him from fifa for eight years. >> what's created by the great humanist nelson mandela. i just received -- >> it seems the quality is just a tad bit poor on -- from that press conference, but we

it seems the pboc does not like that cashing in. they want that gap to close. the widest have seen the discount offshore versus onshore in three months. in august, they had that sudden round of thing the yuan lower. that made that wide back in august. eventually, this should close but at the moment, it seems many are worrying. they are battling foreign banks doing that. betty: that will be a big theme for next year but today, jow wins it. i think you came back with a new look. >> i cut my hair. betty: see you guys later. ♪ >> 12:00 p.m. in new york and 1:00 a.m. in hong kong. welcome to bloomberg markets. from bloomberg world headquarters in new york, good afternoon. i'm scarlet fu. the odds of a federal reserve rate increase in march are rising. the latest setback come a surprising drop in home sales last month. what does this mean for banks act we have the 2016 outlook for financial powerhouses. huge pain for one of wisdom trees top etf's. our financial firms putting too many eggs in one basket? julie hyman has been keeping track of all the moves in the marke

sectors in shanghai, property, industrial, may have been overdone and may require more easing from the pbocmes are still very low, 30% below the trading average. trade in the mainland markets. i want to talk about the worst performers in china, industrials and property developers, but also a number of environmental related companies trading down. industrial production, innovation, environmentally friendly technologies, and were seeing a selloff and these stocks as the air quality starts to recover in beijing. we talked about the beat on australian gdp, it hasn't lifted sentiment. it is the commodity slow down story that is weighing on sentiment, brushing off that beat on third-quarter gdp. oil and gas and energy, the miners, iron ore hits another --ord low, but oil services talk about what is driving that. take a look at the austrian dollar, a little bit of a gain when the gdp number came out, but also weakness now. the austrian dollar did hit a high against the greenback yesterday, so weakening today. ahead ofok at rent that opec meeting, betting that there will be no change in output. bre

that has seen the pboc we can its reference rate by the most in a month. seeing the yuan falling the most in a week. falling about .1%, holding at 6.4079. jobsally, that positive number out of the u.s., we are seeing a lot of buying. hopefully a positive session in europe today. anna: thank you. we might have that. immediate --exas intermediate is below $40 a barrel. opec gave up all pretense of acting as a cartel. ryan chilcote was at that meeting in vienna. richard jeffrey joins us for this discussion. it was described as one of the worst meeting has ever seen. a guest earlier said, why are you surprised? this is what cartels do. to doif they decided nothing, that would be the result everyone was looking for. actually, it was a train wreck. that is why we got such a reaction in the oil price. if you are looking at wti going into today, you are concerned, particularly if you are a technical trader. below $40 a barrel, that is the first time we saw a close below $40 a barrel. if you are a technical trader, you are thinking, are we going to test $34? you lo

because the pboc's stated intentions, our expectation is in the immediate aftermath of the yuan inclusion we will stay stability. anna: -- we will see stability. anna: got a raft of data from money a factor in and nonmanufacturing -- from manufacturing and nonmanufacturing. do you see stability here? i think that is right. things are not getting better, but they are not getting worse either. the manufacturing pmi edged down a little bit. was that neither are removed from october and they remain slightly below the 50 mark which separates improving from deteriorating conditions. what that suggests is stabilization in china's growth and low level. guy: thank you for coming and joining us and giving us a lowdown. tell mallick from beijing -- tom oleck from beijing. anna: mark, great to have you on the set with us. we have just been talking about china, and the conversation about the chinese growth story. you will be visiting europe. do you see that europe and the u.s. are looking at china through the same lens trying to work out how this rebalancing will fall into place? guest: china is a big

the pboc should adopt structurally loose monetary policy.ia, the supreme court new diesel engines of two leaders are above are banned until the end of march -- two iters or above are banned until the end of march. division isry acura aiming to celebrate its 30th anniversary by releasing the successor to its iconic supercar. honda hopes the $150,000 machine will help the overall acura line. acura has beaten cadillac and lincoln in japan this year. how does honda think this new vehicle will take things to the next level? it is priced at more than $120,000. it is hotly anticipated. acura has stayed on top, beating out every premium american brand and not home market for years now. and achievement the other would likein japan to achieve. we will watch very closely to see how this car, this $150,000 rival to the big names in japan in the luxury space, will do. emily: zeb eckert in hong kong for us. check out more asia stories at bloomberg.com. emily: one of silicon valley most powerful women in technology announced her next move. is the newarrior

second straight day that the pboc strengthened. is probably them discouraging more speculation. path of least resistance for the dollar exchange rate. look at the outlook for both fiscal and monetary policy it seems to be more growth. in most cases this will lead to a weaker exchange rate. let's look at crude oil prices. we are back above 36 for new york crude. look at the airlines. we had the bloomberg asia airlines index. 172 .74 is the number. yvonne: let's head back to china now. the elite decision-makers are wrapping up their annual planning session in beijing. they are trying to encourage investors at home and abroad. zeb: this central economic work conference is wrapping up. giving us some clues about the headline agenda items going into 2016 for the chinese communist party and its management of the economy. willeople's bank of china show that monetary policy is flexible and fiscal policy is forceful. interesting to see them use that kind of language. basic monetary conditions will allow for structural reforms they say. they are trying to support rural homebuyers. many pe

pboc intervention. coming fresher -- coming pressure on the yuan. ♪ guy: 14 minutes past the hour.come back. you are watching the pulse pierced streaming on bloomberg.com. china's foreign exchange reserves fell to $2.44 trillion. that is a big number. let's find out what it all means. tom, the fall was expected. talk to us about the reasons behind it. there are a couple of factors at work. firstly, china's this is his. china's investors -- china's businesses. china's investors have expectations that it will weaken in the weeks ahead. china's central bank, the people's bank of china isn't ready to allow the market to do its work. to allow the market to push the yuan lower. it continues to spend large quantities to expand china's exchange rate. guy: how does that fit side-by-side with the news we learned about central bankers have lowered the range. put those two pieces of news together for me. tom: we need to disentangle day-to-day movement in china's exchange rate from the broader trend in china's management of the exchange rate. the daily fixing can go up and down. sometimes that

the pboc gets another rate cut before the fed meets next week. bloomberg sources say dow chemicals is an late stage talks to merge in what would be the industry's largest ever deal. good morning. i'm francine lacqua with tom keene. tom, happy wednesday. tom: happy wednesday, francine. this is an emerging discussion, and it like every other combination moves right into the search for nominal gdp. this is directly linked to the world of janet, mario draghi, mark carney, and everyone else in the economics game. when in doubt, merge. francine: investors seem to like this because both stocks are up. let's get the bloomberg first word with caroline hyde. caroline: thank you. financial authorities have identified the third attacker from harris. they say is a man who left from syria in 2013. all attackers were killed. two detonated suicide vest and a third was shot. the u.s., congress is trying to increase security in the wake of the recent terror attacks. the house overwhelmingly voted to bar people from visiting from iraq and syria in a program that al

it's not clear if things have turned the corner in terms of we picked up enough momentum for the pbocof the gas. what we have seen, and were looking for indicators. can we get the baidu chart up. what this is his -- so what engine, we a search have billions of searches every day. and crunches that the numbers and comes up with the forecast on what the actual pmi would be. for december, 50.2. on the left citing green, those are the actual forecasts. hasn't been above the 50 threshold for expansion or contraction since june. that is one sign. can we get the full picture of? were looking at metrics. 99.5, sme index. him and i china business sentiment, 52.7. china business sentiment, 52.7. i believe this is measured against a threshold of 50. all four have indicated a pickup, which gives those reason to believe that there are signs of stability. index -- i was looking through the details. it tookn mandarin, so about three hours to come up with what these indices were. education, industrial chemicals were doing the best. against 100. the biggest improvement where in machinery and equipment

you don't have a seat on the pboc our fomc -- the only thing you can control is production.ne of the reasons the commodity markets is still searching for a bottom. manus: there is that integral issue, the policy -- look what opec are doing. as much iron ore as you can pilfer. the policy is to -- jonathan: exactly, and that is not happening. that's where the echo of the energy markets are so loud, because the opec-like reduction strategy is quite clearly taking part in the market as well. the big players are carrying on pumping production, the low-cost producers trying to flush out the high-cost producers. but the bottom line -- he said this to me -- he went through the commodities markets, and there is still a high percentage of assets that still have their necks above water. the price will have to come down more, strip out the excess production, then maybe we can find equilibrium. we aren't there yet. manus: but i can tell you where we are -- we will listen. >> i think that we have a market event over the next 30 days, and that is what will happen with interest rates and th

it isomes as pboc says expanding containment of online firms. workers in beijing have been told to cut heating to as low as 14 degrees celsius due to a natural gas shortage, which is resulting in import delays. this has delayed unloading tankers carrying gas. the highest court in the philippines has temporarily stopped senator grace poe from being disqualified as presidential -- in the presidential race. you have questions regarding her citizenship. she renounced her citizenship in e u.s.n1 to live in th but became a dual citizen. australian equities are the only bright spot in what is seemingly a selloff day-to-day. ok, we will see you in a bit. ♪ works from a studios in new york city, this is charlie rose. you have every honor the man could have. george lucas: no oscars. ofon't really have a lot awards. i get a lot of little awards. i have two emmys. never an academy award. i've been nominated but never won. i'm too popular. charlie: meaning what? george lucas: they give academy awards the popular films--they don't give academy awards the popu

now the yuan hit it's lowest level in 4.5 years after the pboc set the midpoint rate at the weakest level since august 2011. 6.45. a steady rise since november. since that abandonment of course more recently than the late summer but nothing too significant. 6.4538. trading was halted in a number of companies held by fosun as the chairman of the chinese investment group has gone missing. the financial magazine reported that he was seen being taken away by police at shanghai airport yesterday. it's unclear if he is under investigation or whether he's, in fact, assisting an investigation. he someone of china's richest men and is often described as the country's warren buffet. do head online for the latest on that developing story and plenty more details. still to come on the show, junk food gets a junk rating. find out why s&p cut the credit rating of kfc and pizza hut's parent company. that's coming up next. today people are coming out to the nation's capital to support an important cause that can change the way you live for years to come. how can you help? by giving a little more, to yours

stubborn in the chinese economy and i will say that it probably warrants a bolder policy response by the pboc and they have the ammunition anyway. in term of the market response, shanghai composite and greater china markets broadly shrugging off disappointing factory activity numbers and rallying. rally mode is broad across the asian markets and they are reflecting those ecb easing expectations. so a lot riding on what mario draghi is going to say. how dovish he is going to sound in terms of his tone and the actions but i can't help but feel that this reaction is some what overcooked because yes even if we do see aggressive easing by the ecb on thursday is that cheaper liquidity really going to come out here and benefit asia? i would argue no. i would say it's going to remain within europe and be deployed within europe. are we going to see profit taking in the days to come after the event? after the ecb? i would say so. anyway, a rally, risk on, today is how we end the day out here in asia this tuesday. back to you now in london. >> sri, thank you. staying in the region, indonesian investigat

the pboc said it's at the weakest level since august 2011. let's check in on the wider trade in asia. sri is there for us now. >> hi, wilf. we're running off the week on a losing streak as you can see here and it's really being dogged by the collapse on the oil side and also depreciation pressure in the chinese yuan and i think the move here is very, very nervous. we're down to the wire in terms of the fed and we're still trying to price it in and it has been well telegraphed but all comes down to the u.s. dollar. slightly firmer u.s. dollar and weaker japanese currency so that helped the japanese equities market elsewhere we are seeing weakness and nervousness ahead of the fed and also ahead of the china data dump that comes tomorrow so yet another event risk that the markets have to contend with. i think there's a lot of jitters in the market now. as we head closer to the fomc and the big question is asia. especially at the emerging market end of the spectrum. ready for it. it has been priced in for a large degree which way does it go. as w

going to continue a little bit longer than we all forecast at the start of the year but then also the pboc at some point when the economy recovers will become more hawkish. what happens to volatility then? what happens to global growth then? because we saw what happened when the fed was getting ready to taper and to tighten. >> i'm sure you'll have reactions in those local markets. we're quite a long way away from them actually happening though. i don't see those happening next year but you might just begin to start worrying about it toward the second half of next year, i suppose. but globally we had an amazingly easy policy. supportive financial markets. not huge for the real economy but whenever they reverse those policies it will be bad for markets. >> the boe is caught between the fed and the ecob. what's it going to do? >> they raise second half of next year. i think the big wildcard next year is the referendum. there's a chance the u.k. is going to vote to leave the eu. sterling is going to be very weak. that's typically a 4% down move in sterling is the equivalent to 1% on rates. so

your, the top one of your notes here is that this pboc could unleash a new chapter of global currencyars. there is a strength against these asian currencies. whitey's you say they will release a new chapter in global currency wars? jane: first, if you look at this table what we see is the ribbon third besthe performing asian currency. the japanese yen has not seen weakness this year, but it has in previous years. and japan arels back to levels from the 1970's. the reason for that is the de facto peg. we said in the past couple days, there is a bit of a changing narrative around the chinese currency. that could influence but we see them moving it to. jane, thank you very much. high: up next, i yie yield crunch. ♪ and 7:3030 in london in brussels. let's get to nejra. nejra: producers have been pushed to the brink of survival. sam walsh says many are hanging on by their fingernails. fellcomes after iron ore below $30 a metric ton last week, a record low. >> we are still looking at "fantasyland." the sustainable price of $30 will not physically work. from the $30, in need to take five dol

will china line -- ex .uy: none of them made easier the fed may have telegraphed it but it leaves the pbocdecision. >> we saw in august the impact that china can have on the emerging markets. the shock of the yuan. i think it is a fair assumption that this is the big risk. there are more eyes on china than on the u.s. that's not the land rate increase is not a risk for emerging markets. i think if the fed goes further than expected today, the market could see a surprise on the downside. i think if the fed does not act today, there will be some surprise because all of this preparation would've been for nothing. jonathan: we have to leave it there. samuel potter, thinking for joining us. , tickyn g 10 strategy for joining us as well. equities on mainland europe on the ftse, marginally up in the green. busy day ahead. we talk u.k. jobs. that is due out later. bloomberg richard jones joins us to discuss that and the fed decision. ♪ >> at this point, the fed has put itself in the position that it has to race race or it will lose all credibility. rates ort has to raise it will lose all credibili

with the pboc setting the reference rates.er for the first time. 648.11 is the level right now. check that out. a lot of these banks are scrambling for yuan funding. traditional sources of you on funding. retail investors. looking --ied up considering the -- of the currency. these conditions will likely persist given the outlook for the renminbi which is some say is one of the most expensive currencies out there. bringing it back to hong kong, 6.5%.ing to watch -- three times the level of the similar rates that we have on the chinese, reflecting the scramble to get that yuan deposits. meeting of arab oil nations has ended with predictions that prices will recover. crude has been trading near a seven-year low. direct says it will rebound because it is too low and it is hurting producers. about this meeting. they seem very optimistic. they are optimistic. you had a rack saying they see prices rising on fundamentals. not ton had qatar saying be too pessimistic about oil. they are the gulf producers. by this dropected in oil price

importantly, the pboc in china wanting more flexible it on their currency, so they do not have to take so i do not think we will get these big dislocations in markets as long as central banks really are providing liquidity. we really have not tightened policy yet, and i do not think what the fed is going to do today is going to tighten policy. off extremelyus easy policy. i do not think we will get those kind of moves unless they are driven by other markets. a lot of what we saw in the high-yield market is dislocations in the energy sector, which is a supply issue. it is not a demand issue, it is not a tight liquidity issue. pumping a lot more oil and natural gas, and that is not a terrible thing for the global economy. guy: will we ever get to the point in this cycle where we think rates will go above inflation? i.e., we end up with rates above 2%? daragh: i do not want to be silly, but it will be data dependent. if global trade picks up, if you get wage growth accelerating within this market that we have in the u.s., the u.k., and elsewhere, that changes the inflation dynamic. then i

an interesting move with the pboc unit, saying they want to a basket of currencies. >> with trade exposure to the rest of the world, that does make sense. to move unilaterally against the u.s. dollar doesn't really make sense given that china still remains the factory of the world at this stage. agentms of the impact on -- on asian currencies, i think it is very well priced at this stage. it will come down to the new wants of the statement, how hawkish the fed is or how dovish they are. therents of stabilization may be introducing a reduction in some of the external risks that the fed has previously played up. think we are going to hear more dovish comments and what does it mean in terms of subsequent rate hikes? >> 2016 is going to be a very unusual year. we have divergent monetary policy paths and divergent economic paths. it is going to be on g3 policy rates anded raising quantitative easing from the ecb and boj. i think the outlook if we look at asia versus the bad -- versus the fed is going to be more vanilla. there will be a modest tightening cycle and a modest rising of interest rat

saying this is the pboc weakening the currency to get ahead of that curve.ll get a better idea. retail sales figures would give us a better idea of whether we are seeing these rate cut since november. the slowdown is starring to look like a hard landing. most of them were in the japanese markets. up by over 7%. particularly when it comes to sending a nice rally across the farming space. population.aging thai airways surging for most after eu regulations. we also saw gains in the japanese airlines accounting for the forecast of the better than expected of profits going into 2016. as a region it was another session to write home about. manus: that is heidi wrapping up the week for us. is expectedrussia to keep monetary policy in the country's battle for the first recession in six years. ryan chilcote is here. how sure are investors? >> of the 34 economists, the median view is that rates will stay on hold i have to say that about a third of them think we will see a small cut to the key rate. if you ask the same question a couple months ago you would've got a di

pboc cut the reference rate by .1%, very different from the 1.8% cut we saw in august. depreciation do you expect more volatility, for that matter? amer: my best reading of the situation as they have attempted the anchoring effects policy. at some point in mid-august they lost the anchor. that created massive amounts of capital flows and importantly, stop them from being able to engage in monetary policy. they wereuidity creating was going through the buying of dollars and capital outflows. at this point they seem to have regained the momentum by stabilizing the currency and not allowing it to weaken the way they did in august. this is the playbook for the next few months. the exchange rate stability, maybe volatility on the margin, but no longer the kind of weakness we saw in august. alix: such a pleasure to have you, amer bisat. scarlet: still ahead, purchases of new homes jumping on 11% in october. we will be speaking with douglas yearley next. scarlet: welcome back to "bloomberg markets." i am scarlet fu. alix: i'm alix steel. toll brothers announced earnings today,

with regard to the pboc and what is going on in china, you seem to have more confidence in that committee'sn many in the market have. hope you have happy holidays. simon hobbs, back to you. >> the wait is over. "star wars: the force awakens" is in cheertheaters around the and in this nation. julia boorstin, take it away. >> showings started here at 7:00 p.m. last night. every showing between 7:00 and 5:00 a.m. this morning has been sold out. there are showings now about every half hour or 15 minutes at the 13 theaters here. early reports have opening night box office at over $50 million, beating the record 43.5 million set by harry potter and the deathly hallows part 2 in july of 2011. how big will this film be? as of tuesday, "star wars: the force awakens" had sold more than $100 million in presales. that massive record and universally positive reviews making for some bullish analyst reports. goldman sachs saying they will have 1.95 billion worldwide that would be after avatar and titanic, after 2.8 billion and 2.2 billion. nomura puts the film's total problems office gross at $3 million.

there is some potential talk in the market about whether the pboc could find new ways to add stimulus to the market but of course anything at this point is unfounded but that is helping put a bit under the stock this morning, joe. >> and we didn't close anywhere near the lows yesterday and now with europe up maybe we'll have a good session here but beyond stocks, oil is rebounding a little after a horrific day yesterday. but not much. talk about oil in a moment the ten year has been well above 220 for a little while. 224. but it's in the middle of the trading range for the last six months or so. not a whole lot of action. it's a week where, you know, leah is down in st. barts checking out shoes and stuff. i don't know if you is a that. >> i missed that. >> it's in the post. and your story is in the post. your hooker story, stripper story. >> it's not my story but yes. i was very excited about the story. >> i've never seen anyone more excited about a story. i'm not sure if you were glad they were getting -- >> just fascinated by a juicy story. >> and i should tell you the author is goi